Another Day, Another SoMa Condo Eyes Price Decline

On the market for 50 days and subject to two six-figure price reductions, 99 Rausch Street #216 is poised to realize a loss of approximately 10 percent from its August 2018 purchase price of $1,120,000. The 2-bed/2-bath modern condominium with upgraded EV charging parking space and secure storage (a combined $35,000 value as originally sold by the developer) is now offered at $998,000 — making it the best value at 99 Rausch to date.

99 Rausch Street #216 is marketed and listed exclusively by cooperating broker Sotheby’s International Realty. Listing photos courtesy of SFAR MLS.

At its list price, 99 Rausch Street #216 would be the only market-rate 2-bedroom home in the five-years-old development to sell for less than $1 million and less than $1,100 per square foot. The most recent comparable home — an identical floor plan on the fifth floor — closed escrow in March 2022 for a reported $1,309,500 ($1,411.10/sqft). A neighboring unit, 99 Rausch #214, is slightly larger with a den and currently listed at $1,179,000 ($1,084.64/sqft).

San Francisco’s South of Market neighborhood was one of the hardest-hit areas in terms of falling real estate prices during the COVID-19 pandemic. Sales data reported to NorCal MLS Alliance, per InfoSparks, shows the rolling 3-month median sales price of 2-bedroom condos plummeting more than 25 percent in the 18-month period commencing January 2020. The subsequent sharp recovery through Q1 2022 was short lived, thwarted by skyrocketing mortgage interest rates and concern of recession.

Waning home buyer activity is further reflected in number of properties on the market, currently just shy of the pandemic-era all-time high. Based on the percentage of 2-bedroom condo listings going under contract, NorCal MLS Alliance reports 10.4 months of inventory in South of Market as of June 2022 — a year-over-year increase of 173.7 percent. Meanwhile, the perennial summertime market slowdown is in full swing with buyers, sellers and their agents jumping on years-delayed travel plans.

99 Rausch Street #216 will be open for a short time this Sunday, 17 July 2022, and can be shown to qualified buyers by private appointment. Contact us today for additional information and to schedule a tour.

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